Otago Daily Times

PMI re­bounds to 56.3 in Sept

- JA­COB MCSWEENY Business · Otago · Southland Region · New Zealand · Immigration New Zealand


Otago and South­land has bounced back strongly af­ter a big drop­off when the Auck­land Covid­19 re­stric­tions were in­tro­duced.

The Per­for­mance of Man­u­fac­tur­ing In­dex (PMI) scored the sec­tor at 56.3 points for last month, up from 37.9 in Au­gust.

A PMI read­ing above 50 in­di­cates that man­u­fac­tur­ing is gen­er­ally ex­pand­ing; be­low 50, it is de­clin­ing.

The in­dex found pro­duc­tion lev­els were above 60; new or­ders, em­ploy­ment lev­els and stocks and fin­ished prod­ucts were above 50.

De­liv­er­ies of raw ma­te­ri­als were less than 50.

There were 54% pos­i­tive com­ments for the month.

‘‘There was mixed feed­back, which in­cluded both pos­i­tive and neg­a­tive re­ac­tions in con­struc­tion, wood and pa­per prod­uct man­u­fac­tur­ing along with ma­chin­ery and equip­ment man­u­fac­tur­ers,’’ Otago South­land Em­ploy­ers’ As­so­ci­a­tion chief ex­ec­u­tive Vir­ginia Ni­cholls said.

‘‘Some food man­u­fac­tur­ers ex­pe­ri­enced less sales due to the re­gional Alert Level 3 in Auck­land.’’

Food/dairy ex­ports were steady and there were con­cerns about in­creased air­freight costs.

Alu­minum boat man­u­fac­tur­ing was steady.

The long­term un­cer­tainty around Covid19 has raised con­cerns, Mrs Ni­cholls said.

‘‘There are con­cerns with fill­ing some skilled and un­skilled roles. A safe, open bor­der is cru­cial to NZ’s ex­port suc­cess,’’ she said.

‘‘A pipe­line of skilled and qual­i­fied work­ers is crit­i­cal to New Zealand’s Covid­19 re­cov­ery, but we are strug­gling to get them into the coun­try.’’

She said there were ma­jor con­cerns as the start of the hor­ti­cul­tural sea­son ap­proached with a dis­tinct lack of sea­sonal work­ers.

‘‘De­spite some good cam­paigns to get New Zealan­ders to cover the RSE work­ers, many be­lieve it will be dif­fi­cult to re­place these ex­pe­ri­enced work­ers from the Pa­cific with short­term work­ers.’’

Busi­nesses were in­creas­ingly frus­trated with de­lays at an over­whelmed Im­mi­gra­tion New Zealand, which have wors­ened since Covid­19.

 ??  ?? Vir­ginia Ni­cholls
Vir­ginia Ni­cholls

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